Memorandum
City of Lawrence
Public Works
|
TO: |
David P. Cronin, P.E., City Engineer |
|
CC: |
Charles Soules, P.E., Director of Public Works |
|
FROM: |
Matt Bond, P.E., Stormwater Engineer |
|
DATE: |
June 2, 2016 |
|
RE: |
Stormwater Utility History & Proposed Rate Increase |
This memorandum is recommending a 3% increase to the current stormwater utility fee from $4.00/ERU to $4.12/ERU. It should be noted that if implemented this would be the first increase to the rate since January 1, 2003.
Background
In 1993, a Stormwater Task Force was formed to find solutions to decades of localized flooding problems within the City of Lawrence. After several years of planning, the City Commission adopted Ordinance 6895 on February 25, 1997 which established the Stormwater Utility. The passing of this ordinance established a fee to provide funding for maintenance and improvements to the storm sewer system. A comparison of other community ERU rates can be found in the following table.
|
Community |
Fee |
|
|
Lenexa |
$8.50 |
/month |
|
Olathe |
$5.66 |
/ERU |
|
Fairway |
$5.00 |
/ERU |
|
Hutchinson |
$4.75 |
/ERU |
|
Manhattan |
$4.60 |
/ERU |
|
Topeka |
$4.25 |
/ERU |
|
LAWRENCE |
$4.00 |
/ERU |
|
Ottawa |
$4.00 |
/ERU |
|
Shawnee |
$4.00 |
/ERU |
|
Hays |
$3.62 |
/ERU |
|
Pittsburg |
$3.56 |
/ERU |
|
El Dorado |
$3.00 |
/ERU |
|
Overland Park |
$2.00 |
/month |
|
Wichita |
$2.00 |
/month |
ERU stands for Equivalent Residential Unit, which is the area of impervious surface on an average single family residential property. This number was determined to be 2,366 square feet. Initially the rate established with the passing of the ordinance set the ERU rate at two dollars ($2.00) per month. The ERU rate was raised to $3.00 on January 1, 2000 and finally to its current rate of $4.00 on January 1, 2003.
All parcels of land in Lawrence are subject to this fee, including City and other tax-exempt properties. Fees are based on the square footage of impervious surface on a property. Impervious surface is defined as area of ground that is covered by roof, concrete or asphalt. The monetary amount charged is determined by multiplying the number of ERU’s by the current rate as defined below.
The 1996 Stormwater Master Plan identified 41 total projects to be completed. The master plan sub divided these projects into three Groups (#1, #2 & #3) with Group #1 being the highest priority. These projects identified areas with recurring residential or commercial structure flooding by surface runoff. There were eleven projects designated as Group #1 projects and eight of these projects have been completed to date. Some of the completed projects include: the Carolina Project between 21st and 23rd Streets, 21st Street from Stewart Avenue to Naismith Drive and the 13th and Oregon Project. Currently under construction is the Maple Street Pump Station although it was funded with the infrastructure sales tax.
Due to rising construction costs, the rate of inflation and rising personnel costs the ability to complete the remaining projects listed within the master plan has necessitated the need for an increase in the existing stormwater utility rate. A rate increase will allow progress to proceed in completing additional projects listed within the master plan. Future projects would include the intersection of 23rd Street & Ousdahl Road, Alabama -17th Street to Naismith Drive and Maple Lane, 19th to Brook Lane just to name a few.
Additionally the increase would allow a much needed inspection and maintenance program. Currently problems are addressed on a reactive basis. With a formal video camera inspection program in place existing storm sewers would be videoed to determine existing pipe conditions as well as evaluate potential future problem areas.
Staff Recommendation
At this time a 3% increase to the existing rate will help to address the issues previously discussed and generate approximately $90,000 of additional revenue. The following table indicates the revenue generated from the collection of stormwater fees.
|
Calendar Year |
Collected Fee |
|
2011 |
$2,952,788.29 |
|
2012 |
$2,970,638.54 |
|
2013 |
$2,972,682.60 |
|
2014 |
$3,037,039.18 |
|
2015 |
$3,014,086.28 |
Staff recommends a 3% increase to the current stormwater utility fee from $4.00/ERU/month to $4.12/ERU/month.